New Jersey Automotive January 2018

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THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

PLUS:

A Q&A with AASP/NJ’s Former and Current Presidents

January 2018 $595

CCC Changes Secure Share Platform after Industry Backlash

A Snapshot of NORTHEAST® 2018 www.grecopublishing.com

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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2017 - 2019 OFFICERS PRESIDENT Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net COLLISION CHAIRMAN Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dandmautobody.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Billy Aiello, Lee’s Auto Body 732-634-6161 / repairs@leesautobodyinc.com Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanautobody.com Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com

PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Kristen Dalli / kristen@grecopublishing.com

CONTENTS

10 14 18

VOLUME 48 NUMBER 1 | January 2018

OUT OF BODY (AND MECHANICAL) EXPERIENCES PRESIDENT’S MESSAGE EXECUTIVE DIRECTOR’S MESSAGE

24 58 62

COLLISION CHAIRMAN’S MESSAGE I-CAR CALENDAR NJA ADVERTISERS’ INDEX

44 COVER STORYby Kristen Dalli A Snapshot of NORTHEAST® 2018 LOCAL NEWS 26 Looking Back/Looking Forward: A Q&A with AASP/NJ’s Former and Current Presidents by Kristen Dalli

40 Auto Body Distributing Co. Holiday Party Highlights NATIONAL NEWS 31 CCC Changes Secure Share Platform after Industry Backlash

by Joel Gausten

36 NY Suits Against Progressive and Nationwide Move Forward

by Joel Gausten

EASY WRITER by Larry Montanez III, CDA 50 What You Must Require From Your Estimators LEGAL PERSPECTIVE by Mitchell Portnoi 58 Sexual Harassment: A Primer AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 62 Wharton Insurance Briefs

OFFICE MANAGER Donna Greco / donna@grecopublishing.com CONTRIBUTING EDITORS Charles Bryant • Mario DeFilippis • Jeff McDowell • Mitch Portnoi • Ron Ananian Keith Krehel • Jerry McNee • Bob Dirkes

Published by: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2018 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Stock Images courtesy of www.istockphoto.com.

Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Phil Dolcemascolo Tom Elder Bob Everett

Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano Michael Lovullo Jeff McDowell Sam Mikhail Ron Mucklow

George Petrask Russ Robson Jerry Russomano George Threlfall Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

BAD TASTE I was at a very dear friend’s 60th birthday party last week and had the opportunity to catch up with a few old body shop friends that I don’t get to spend enough time with these days. It was my podcast partner Eddie Day’s (Collision Restoration) birthday and I had the pleasure of sitting with him, Glenn Villacari (Parkway Auto Body) and Lee Vetland (Lee’s Auto Body). (Other friends of Eddie’s: Please don’t be offended. It was a surprise party, so he had nothing to do with the guest list.) Obviously, I see Eddie quite often, and even though I don’t see Glenn that much, we try and talk once a week or so. I usually only see Lee once a year at the AASP/NJ golf tournament. I have known these three men probably over 100 years combined, so there was lots to catch up on. It was a fantastic time.

During the night, Lee happened to ask me a question out of the blue that I don’t think he’s ever asked me before. It’s a question I have heard for most of my life whenever I am at social events. It goes something like this: “How come you never drink?”

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by THOMAS GRECO, PUBLISHER

I usually have a standard answer. I never gave it much thought because the answer was simple: I never found alcohol that I liked the taste of. It made sense. I was always a spoiled brat from the time I was a little kid. If I didn’t like something, I just screamed until I got something else, whether it was green beans, macaroni, or later on, beer. But Lee got me thinking.

I’ve written it here before that my dad loved to drink. Like most businesses, running a construction business was very stressful. Except maybe a little more when you figure in the unions and the mobsters, and the fact that you have two brothers as partners. So, he’d come home and end the week with Schaefer beer (I can still hear that jingle in my head as I write this — “Schaefer is THE one beer to HAVE, when you’re having more than ONE!”) and Canadian Club whiskey. He’d eat dinner, turn on the radio and drink until it was bedtime.

Now don’t get me wrong — he was never mean or violent.

He was “happy.” He’d sing along with Dean Martin, Frank

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Sinatra and Jimmy Roselli, and tell anyone who walked in that he loved them. Did that have anything to do with my lifelong hate of alcohol? Most psychiatrists would probably say yes, but I have my doubts. Because I don’t think of those nights as bad nights. He was happy. He was letting off steam. Sure, my mom hated it. But I never minded being on the receiving end of those “I love yous” – or the $20 bills that usually came along with them!

Of course, as I got older, ALL my friends loved to drink.

We’d go to Yantacaw Liquors and give older kids money to buy Thunderbird wine or a six pack of Budweiser. But not me.

I’d have some Gatorade and just walk along the railroad tracks with them, wishing I was home listening to records or with some girl with big “eyes.” Ironically, it was the girl with the big “eyes” that finally got me to drink.

A few years later when I was 18, we were at a local pub called the Half Penny. I was just there nursing my Cokes, and then I looked up and I saw her. She came over and started talking to me. I had to be cool, right? My friend was the bartender, and he started handing me vodka and orange juice with Sambuca shots for chasers. Every time I turned around he would refill the glasses. It didn’t take long before I was drunk and making a fool of myself. Now you may be wondering about my bad taste reasoning. Well, my friend was devious. He started the screwdrivers with mostly orange juice, then increased the vodka as the alcohol kicked in, so

by that time, I could have been drinking turpentine and wouldn’t have known. Sambuca on the first try actually tastes like black licorice before the kick, so he got me on that. After an hour or so, my taste buds were long gone.

To be honest, I don’t remember waking up with a hangover, so I can’t say that little experiment turned me off.

Apparently, I didn’t make a fool of myself either, because I eventually hooked up with the girl. I went back a week later and tried both drinks again, and couldn’t even get two sips down. It just kept coming back to the taste.

All these years later, it still comes down to that. I just don’t like the taste. So, leave me and my virgin strawberry daiquiris alone. I hear the chuckles and the snickers when I order. In fact, to come full circle, Eddie Day never lets me forget the fact that my favorite drink ever was a non-alcoholic concoction called a peaches and cream.

Now that I think if it, I should have ordered one at his party.

Another good man passed away today. I only knew Anthony Sauta a few years, but he was a sweet, kind, generous person who made my life better by being a part of it. God bless you, Ant. NJA

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PRESIDENT’S MESSAGE

JUDGMENT DAY As of this writing, Texas-based attorney Todd Tracy (Tracy Law Firm) – who has earned headlines across the country for his part in the recent John Eagle verdict – has partnered with the Auto Body Association of Texas (ABAT) to have two vehicles repaired using aftermarket parts and sent to California to be crash tested. AASP/NJ is one of the industry entities that have donated funds to assist in making these tests possible. To say that I’m interested in the outcome of these tests would be an understatement.

This could be a huge event for our industry and a testament to the realities of aftermarket parts. It’s very possible that the difference between an OEM part and its aftermarket version will be significant in these tests. It might finally

be time to shine a light on this issue and encourage more body shops to stand up against those entities that insist that these parts are appropriate for repairs.

In terms of parts, my business uses 98 percent OEM, one percent aftermarket and one percent used. We avoid aftermarket parts as much as we can, simply because it takes too much time and wastes too many of our resources to source and price-match them – and then deal with issues surrounding quality and fit. There are times when we actually lose money because we’re dedicated to doing things the right way during a repair. This really hurts when you consider that we’re a good 20 years behind in what our Labor Rate should be, but we still do what needs to be done. Too many

by JERRY MCNEE

shops are looking at the discount that they’re getting on aftermarket parts and not on the possible long-running effects of their usage. The overall picture of our industry is much bigger than the immediate cost savings you might achieve through these products.

Insurers are there to insure the car and pay for the damages. In reality, many of them are more focused on managing their costs and spending as little as they can. Don’t be surprised if every single insurance company in the country is looking at the verdict in the John Eagle case – especially the liability aspect – and what’s going to happen in these crash tests. This is a moment in our industry’s history that should not fall by the wayside in our attention.

NJA

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EXECUTIVE DIRECTOR’S MESSAGE

Evaluation Will Dictate the Future of the Collision Industry

by CHARLES BRYANT

an appraiser from the insurance company as long as they write their estimate under the restricted guidelines. In other words, the DRP shop has the opportunity to

For as long as I can remember, insurance companies have limited how much they will pay for the repair of damaged vehicles by applying pressure on shops in various ways. Steering shops’ customers away when the shops have attempted to fight back has been a longstanding issue in this industry. A new shop owner might fight back for the first few times, but eventually, even a new shop would get the point when enough jobs get steered away. Many shop owners would surrender and accept whatever the insurer was willing to pay, rather than keep losing every job that comes through the door. Obviously, a shop owner can only afford to lose so many jobs before he or she would be forced to close the doors. It was for this very reason that many shops decided to stop fighting the insurers and just go the DRP route. It was easier to go

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along with the insurers, rather than to attempt to fight it out on every job.

However, by joining an insurer’s DRP network, the shops also had to agree to follow the insurer’s restricted repair guidelines as part of the agreement.

Every insurer out there is quick to say, "We don't tell shops how to repair vehicles." In reality, that is simply not true. Anyone who has ever had a look at a set of DRP guidelines knows exactly what I am talking about. In return for agreeing to the restrictions, the insurance companies often do all they can to convince, persuade, or even intimidate consumers to have their vehicle repaired at a DRP shop, especially when they have a problem reaching an agreed price with a nonDRP shop. An additional bonus is also awarded to the DRP shops that agree to the restricted repair guidelines. The shop does not have to negotiate with

compensate themselves by adjusting the repair hours to compensate for the restricted guidelines after the vehicle is in the DRP shop and under repair. This allows the insurance company to limit negotiations and payment in a nonDRP shop by claiming that the DRP shops will repair the vehicle for the amount of the company’s estimate.

By creating a set of limited or restricted guidelines that the DRP shop must follow, the insurer is in fact telling shops how to repair damaged vehicles.

When an insurer limits the Labor Rate to an amount that does not allow for a fair and reasonable profit, the insurer is telling shops how to repair vehicles.

Another prime example is when a shop writes an estimate for a new quarter panel, and after the insurer inspects the vehicle, they refuse to pay for the new quarter panel. Instead, the insurer will write for six or seven hours to repair the quarter panel, and refuse to pay for the replacement of the panel.

If that is not telling a shop how to repair a damaged vehicle, I don’t know what is!

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EXECUTIVE DIRECTOR’S MESSAGE When a collision shop writes their repair estimate for a new OEM front bumper reinforcement, and an insurer refuses to pay the cost of the new OEM bumper and limits their payment to an amount that will only cover the cost of an aftermarket bumper reinforcement, the insurer is once again telling the repair shop how to repair the vehicle. In fact, this is the argument of John Eagle

Collision Center — the shop involved in the Texas lawsuit that resulted in a $31.5 million settlement. In the deposition that basically hung John Eagle, shop manager Boyce Willis explained why they glued the roof on the vehicle, as opposed to welding it: They can only do what they are paid for.

The bottom line is, at the present time, and for many years in the past,

insurers have told shops how to repair damaged vehicles. However, as the word spreads through the collision industry about the John Eagle lawsuit, things are slowly, but surely, beginning to change.

The John Eagle lawsuit has been a wake-up call for many shops across the nation. Now, more and more shop owners are fighting back and refusing to perform repairs in any manner other than how the OEM recommends. As time goes on and the vehicle manufacturers continue to put out position statements on the correct way to perform repairs, it is evolution that will dictate the future of the collision industry — because a $31.5 million judgement would put almost any collision shop out of business. One thing is for sure: We will be watching, and standing ready to assist our members when an insurer refuses to pay for the procedures required to repair damaged vehicles safely and properly.

NJA

On behalf of AASP/NJ, we are shocked and saddened to share the news of the passing of AASP/NJ Board member Anthony Sauta (East Coast Auto Body, Neptune) on December 19.

Anthony was an integral part of AASP/NJ and a valuable resource to collision and mechanical repairers alike. He was a friend to all who came into contact with him and will be greatly missed.

New Jersey Automotive will feature a tribute to Anthony in the February issue.

NJA

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SPECIAL ANNOUNCEMENT FROM THE AMATO AGENCY

“We are pleased to announce that on November 13, the Superior Court of New Jersey issued a judgement of dismissal for all charges made against The Amato Agency LLC in February 2016.

The Amato Agency would like to express their sincere gratitude to all the association members, policyholders and colleagues for standing by them during this difficult time.

The Amato Agency looks forward to servicing their policyholders and strengthening their relationships with automotive trade associations.”

NJA T

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COLLISION CHAIRMAN’S MESSAGE

AN EVENTFUL YEAR FOR AASP/NJ As we take another trip around the sun, I would like to wish everyone a Happy & Healthy New Year, and I hope we move forward towards more peaceful and prosperous times.

Looking forward through the year,

AASP/NJ is planning to provide a number of events to educate and motivate our industry to do better as a whole.

Todd Tracy — the lawyer famous for advocating on behalf of OEM repair

USA Importer & East Coast Distributor

Ted Dinnella 516-361-9220 www.collisionequipment.net 24 | New Jersey Automotive | January 2018

by DENNIS CATALDO, JR.

procedures, and costing John Eagle Collision $31.5 million — will be paying a visit to the Garden State in early January. Tracy’s class is the perfect opportunity for members to not only support the association, but gain realworld experiences to bring back to their shops and avoid their own multi-million dollar lawsuits. This event is also a great way to start off the year on the right foot, as we all look to stay more educated, active and informed in the industry and the association.

With the start of the new year, we also begin to look forward to AASP/NJ’s annual NORTHEAST® Automotive Services Show. Though still a few months out, it’s never too early to begin planning for NORTHEAST. The show gets bigger and better every year, and there’s no shortage of opportunities to expand your industry knowledge or better your business.

In addition, AASP/NJ recently joined several other associations and body shops in helping support a KARCO Engineering crash test that will ultimately yield results that will drastically improve our industry.

KARCO will be performing three identical crash tests: One with a gluedon roof (as the procedure was performed in the John Eagle case), one repaired with aftermarket parts and one repaired with OEM parts. Being involved on such a national stage right at the beginning of the year shows great promise for the remainder of 2018.

Going forward, we have to realize that the future of our industry is in our hands. We must know that we have the right to repair vehicles correctly, and that the vehicle owners — our customers — should demand that they have their vehicles repaired correctly.

Through training, seminars and trade shows, we must educate ourselves to take back our industry. I hope to see you at these future events and I wish you all good luck in the coming year!

NJA

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LOCAL NEWS by Kristen Dalli

LOOKING BACK, LOOKING FORWARD:

A Q&A with AASP/NJ’s Former and Current Presidents At AASP/NJ’s 2017 Annual Meeting, the association elected a new president (Jerry McNee, Ultimate Collision) for the first time in eight years. To commemorate the occasion, New Jersey Automotive decided to sit down with both Past President Attending Jeff McDowell (Leslie’s Auto Body) and current President McNee to look back at the last eight years in the association’s history, as well as where members can expect AASP/NJ to be headed in the future.

AASP/NJ PAST PRESIDENT JEFF MCDOWELL

New Jersey Automotive: You just completed eight years as President of AASP/NJ. When I say that, what’s the first thing that comes to mind?

Jeff McDowell: How fast it went. Thinking back, I initially thought it was only six years, but it was eight years, and they really flew by.

NJA: When you first joined the association, did you have any ambition of one day serving on the Board of Directors?

JM: That was a long time ago. I joined the association in 1983. I’m not sure I can remember that far back (laughs). It all went pretty quick — I was in the association for a year and half before I was asked to join the board.

NJA: You’ve served four terms, longer than any of your predecessors. What are some of the moments that stand out for you?

JM: Oh, there are so many of them. I am so proud of the evolution of the NORTHEAST® Show over the last eight years. The good decisions the Board has made have helped move us forward into what the show has turned into today.

Without the constant growth and change, I don’t know where we’d be if we hadn’t put in the energy to improve. The way the economy has been the past eight years, and the way the world has been the past eight years, we’ve overcome a lot of obstacles as an association.

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During a trend of declining trade shows, we’ve been able to grow NORTHEAST, which I think is a testament to joint cooperation — everybody thinking the same and putting in the work to make a successful event.

We’ve also brought a bunch of new, young shop owners onto the Board the last eight years. We’re now up to four or five new directors who weren’t there when I started, which is great for the future of AASP/NJ. NJA: How do you think AASP/NJ has grown in those eight years?

JM: I’m very proud of the fact that we have added more benefits and have started doing even more for our members over the last eight years. We’ve strengthened our training opportunities for members and also increased the number of free seminars and classes available, and that is something we’ll continue to do. We want to do more stuff for free, rather than charging. That’s what the success of the trade show allows us to do. Most importantly, the level of quality of the programs we’ve presented has only gotten better and better over the years.

NJA: What accomplishment are you most proud of during your time as president?

JM: It was all such a wonderful ride, it’s hard to single something out. There are so many great things that have happened, it’s hard to pick just one.

NORTHEAST, obviously, is a huge accomplishment. I think just the general direction the association is going in right now is an accomplishment in itself. The national recognition we’ve gotten as an association has been great, too. Our chapter has gotten a lot of recognition in recent years. We as an association were so low at one point and now we have risen to great heights; that’s not only a testament to me, but to everyone who has served on the Board over the last eight years. I couldn’t have done any of it without them.

NJA: What were your most challenging issues?

JM: When I was first elected, we were at the tail end of trying to finish up a lawsuit between the association and the former manager of the NORTHEAST Show. At that point, we were just trying to put things in place — processes and procedures to not end up in that situation again. Thankfully, it worked out.

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I like to take challenges head on. If you look at something as being overwhelming, you can’t have a good attitude of having a successful outcome. You just need to take it one thing at a time.

NJA: Looking back, is there anything you would do differently?

JM: Time goes so fast. There are so many things you want to accomplish. I’ve noticed that most people who take this position, as well intended as they are, and despite all the energy and drive they have or the number of positive things they want to accomplish, they get frustrated after two years that things don’t move. And what happens? They get burned out.

I love this industry and I’m passionate about this industry, but things don’t move at a lightning pace; they move at a snail’s pace. Whether it’s legislation — trying to get something passed in Trenton — or training, membership, really any issue, it’s not going to be solved overnight. I was lucky that I had the support of the Board and the patience to not let those things discourage me. They actually inspired me.

I feel as fresh now as the day I started. I think what helped me was that I served as AASP/NJ Treasurer for 16 years. I served as 10 different presidents’ right-hand man, and I watched them all burn out. It can get overwhelming at times trying desperately to get something accomplished.

You want to get legislation through, and it’s not happening.

You can’t get support; it’s not moving. You can’t let that burn you out. And I didn’t.

NJA: What advice do you have for your successor?

JM: Take things slowly. Set your goals. Put structures in place to get them accomplished. Encourage everyone else to help get things done. Inspire the Board and the members.

Most importantly, lead. And of course, don’t get burned out.

NJA: Will you continue to participate in the association?

JM: Of course!

NJA: When people look back 10 years from now, what would like your presidency to be most remembered for?

JM: That I did the best that I could. That’s all anybody can do, right?

NJA: You were recently inducted in the AASP/NJ Hall of Fame — for the second time. What was that like?

JM: It was terrific to be recognized. I wasn’t expecting it at all. I even forgot I had been elected before! The next day, I was looking at the wall in my office, and realized, “Hey, I already have one of these.” It was from 2008, so it had been a while. It’s always thrilling to be honored by your peers. I was honestly very touched and emotional. It means a great deal to me.

NJA: Is there anything else you want to share about your time as president?

JM: I’m really excited about the new, younger members. A lot of us have been carrying the torch for a while. Change is good. We’ve added a lot of young people and they’re all charged up, they have a lot of great ideas. Some of us have been in this industry for over 30 years, and we’re still passionate about it, but we’re getting to the point now where we want to take it easy a little bit. It’s great to have the younger people, full of energy, ready to step up.

AASP/NJ PRESIDENT JERRY MCNEE

New Jersey Automotive: First, can you please share a brief background of your start in the industry, and when you joined AASP/NJ?

Jerry McNee: I’ve been in the industry for 42 years, and I’ve been a shop owner for 29 years, since 1988. I joined AASP/NJ in the early ’90s.

NJA: When you first joined the association, did you have any ambition one day of serving on the Board, or being President?

JM: No. I’ve been sitting on the Board for seven or eight years now. I wanted to help and give back to the industry and to Charlie (AASP/NJ Executive Director Charles Bryant) — he’s been great to me over the years. All the support and help the association offered is a big benefit. I just thought it was time to give back. I wanted to be able to get on the phone for anybody looking for advice or help and give back the same way the association did for me.

NJA: As President, what are your top three priorities for the association moving forward?

JM: Obviously, I’d like to help make it stronger. It’s been a strong association throughout the years, and I’d like to see it tighten even more. I’d like us to be industry leaders throughout the country. Ideally, other groups would look at us and say, “What are they doing? We need to get some of that.”

Education, for sure. Educate the shops, have ongoing training and new product training. I see what’s lacking — it comes to my door every day. Over the 29 years of being in business, and 42 years in the industry, I see the same headaches, and the same problems over and over and over. The Einstein definition of insanity is doing the same thing over and over and expecting different results.

Something has to change.

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LOCAL NEWS I want to help give back all the experience I’ve gained throughout my career, package it and share it with our members. I’m more than willing to spend money to travel three times a year.

A lot of times, it’s like I’m talking Chinese. A lot of shops don’t have a clue. And I was doing the same thing, and making the same mistakes for 16 years of my career. Once I stated to figure it out, realize there are others out there, others willing to share and that the information is available, I was looking to put it to work.

It's a lot of work. It takes time to fly out to Vegas or another state, or be part of a performance group. But if you do those things, or spend time with other shop owners and get involved in each other's financials and KPIs, for example, you start to see what's working and what's not. And you start to learn from each other what you handle differently, what you handle the same — and you learn from each other. If you don’t put in the time, don’t expect anything in return. I want to be able to come out here and put what I’ve learned to work. At the pace we run, we can immediately see if it’s working. If I can give this back to the members, or share that information with others, I’m more than willing to do it for sure.

NJA: What do you feel are some of the industry’s biggest issues, and how do you hope to help address them in your new role as AASP/NJ president?

JM: Everyone might get tired of me saying this: Stop crying and do something about it. The east coast has the loudest mouths, the biggest barks and the smallest bites. I want to push them — I want everybody pushing in the same directions.

We all need to be on board — follow the P-Pages, take a look at DRP relationships you have — are they an advantage to you? Just because you have a shop full of cars doesn’t mean you’re making money. Not all insurance companies are the same — some will push their luck with the shop as a DRP to get what they want. At the end of the day, the ones with the deep pockets making the money are the insurance companies. They get the bonuses, the

28 | New Jersey Automotive | January 2018

raises, the company cars, 401(k)s, health insurance. I want to offer that to my guys, but I can’t. And it’s very difficult to do that when you’re dealing with insurance companies whose main objective is to cut costs.

They’ll never tell you to fix a car incorrectly, but they want to cut costs by all means. They’ll cut everything out of an estimate because it’s going to fix their bonus, or raise or incentive — whatever the case may be. There’s nothing worse than handing in a supplement you spent hours to write, and you hand it to the appraiser and he says everything’s good. Then you see that everything is so good, but you’re $2-5,000 apart. Who pays our time to go back and fix that?

The problem with shops is they don’t have time to look at it close enough, and then they never look at it again. Insurance companies have been able to capitalize on that, time and time again.

Everybody needs to push in one direction: Ask for the same things, the same rates, follow the P-Pages as they’re written and everybody needs to job cost repairs. Everybody.

NJA: What will be some of AASP/NJ’s key goals throughout your presidency?

JM: Having participation. I’d like to see more members at association events.

I’d like to have ongoing training — continuous training that these guys can learn and take things back to their shops. I’d like to see everybody start running their businesses like corporaterun businesses. I’d like to share successes and failures with everybody and vice versa.

I talk to people from around the country, and the tri-state area is getting basically the same Labor Rate — maybe a few dollars’ difference here and there. Meanwhile, shops in other parts of the country are getting $100, $110, $130 an hour for mechanical, and $95 for paint and materials. I don't understand; are they fixing a different type of car than I'm fixing? No. Why are insurance companies able to pay them that, but refuse to pay us that here? If everybody started asking, it might make things a little easier, and we could try to change the industry.

NJA: This is often a difficult industry.

What advice or words of encouragement would you offer a fellow shop owner to join the association?

JM: Simple: There is strength in numbers. Put up or shut up. Do something about it. If every member changed their door rates, or started requesting a higher hourly rate, or started asking for some of the things we do for free daily, it would make life easier.

NJA: NORTHEAST® has grown incredibly over the last eight years.

What do you hope to see with the 2018 show, particularly the new partnership with WMABA?

JM: I hope it’ll draw more attention. I hope it’ll be a benefit to everyone that attends to see the end result, or reap some of the rewards or benefits. I think it’ll bring another aspect to the show that we’ve never had before.

NJA: You’ve been around the country as an instructor, and as a member of several 20-groups. How will that benefit you in your new role as president?

JM: It gives me the ability to communicate, share, talk to and experience other top shops and associations from around the country.

With that, I can bring this back to AASP/NJ and share those successeswhat works and what doesn’t. Most people can’t fly out to Texas or Arizona or Florida on a regular basis. I do, and it’s a costly feat, but it’s worth every penny. I don’t have all the answers, I don’t live in a perfect world and I don’t run the perfect shop.

NJA: Is there anything else you’d like to share as you set out to start your presidency?

JM: The biggest message is: Stop crying about it. We have nobody to blame but ourselves. These are the cards we deal to insurance companies, and they play their hands better than we do. Our job is to fix cars, and fix them correctly. Their job: Pay for it. Our job then is to explain, educate, and show up.

NJA

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CCC Changes Secure Share Platform after Industry Backlash NATIONAL NEWS by Joel Gausten

The collision repair industry has a voice that matters.

On December 19, CCC issued a press release announcing substantial changes to its Secure Share platform “after listening to customers and industry stakeholders” regarding a host of concerns over the full rollout of the product this April. According to the announcement, CCC has eliminated fees for Secure Share, “creating an environment where participants can share data securely with their chosen partners at no cost.” Additionally, the company has updated its Secure Share terms of agreement “based on direct feedback from app providers while maintaining a safe, reliable platform.”

“CCC is committed to facilitating efficient, collaborative, and secure

communication between our customers and the business partners they rely on to operate successfully,” said Mark Fincher, vice president of market solutions at CCC. “We’ve had ongoing discussions with customers and industry stakeholders on the best ways to do that, and [this] announcement is in response to that feedback. Repairers and application providers will now have more choice and flexibility in how they work with one another.”

Aside from a nearly 180-degree change in positioning from CCC on how Secure Share will be offered to the market, another notable takeaway is that the industry can effect change when it speaks up. CCC credited revisions to the proposed structure and business model to the communication directly

presented by those in the industry who would ultimately utilize it. The discussion of Secure Share has taken a front seat in industry dialogue since CCC first announced the development of the system in 2015, and that dialogue has seemingly been a major influence in its new conditions.

To understand the significance behind CCC’s change in direction, a look at the history of the Secure Share concept is in order. First, there is the fundamental differences between EMS and BMS. EMS – or Estimate Management Standard – allows app providers to have access to full (and unencrypted) estimate data and personal customer information. This is the current system used in the industry.

BMS – or Business Message Suite – is the standard created by the Collision Industry Electronic Commerce Association (CIECA) to better protect the data generated in collision repair estimates. With BMS, data is encrypted for greater security. Perhaps most important of all, BMS is intended to give collision repair businesses a greater ability to select which data is sent to which app providers and other parties.

(Despite the arrival of Secure Share, CCC has stated that it will continue its support for the export of EMS files.)

Currently, approximately 22,000 of the roughly 35,000 body shops in the US are CCC One customers, so the implications of the Secure Share move are massive. While Secure Share uses the CIECA-recommended standard as the platform for their new offering, the platform had been met with raised eyebrows and concerns over who will be able to access, manage and even control one of the industry’s most valuable assets – the data.

“The controversy has to do with the business conditions surrounding it,” observed Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), during a call with us in late November. “I think a number of the concerns we’ve heard have to do with how CCC has retained control over the exchange of the data, rather than creating a tool that allows the end-user to control it. They have imposed fees to manage the exchange of the data that didn’t previously exist to companies that New Jersey Automotive | January 2018 | 31

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NATIONAL NEWS

Aside from a nearly 180-degree change in positioning from CCC on how Secure Share will be offered to the market, another notable takeaway is that the industry can effect change when it speaks up. accessed it for free and with permission. But I think the biggest concerns are around the sentiment of control through imposed conditions that require other businesses – who may actually be competitors to CCC – to become their customer if they wish to communicate electronically with repair businesses who they already do business with today – that write estimates in CCC. “The contractual language is onerous and concerning to third-party providers and, in some cases, has caused a number of them to state that they won’t participate unless there are significant changes in the contractual language,” he added. “In those cases, it then causes concern over what it means to shops who write the roughly 70 percent of the industry’s estimates in CCC when significant service providers can’t accept the terms, self-imposed deadlines and contractual requirements. Does electronic communication as we know it cease at that point? Do new solutions present themselves, or is CCC able to leverage their market share to simply command participation? I think CCC’s market share has also certainly contributed to a great deal of the questions. Could a company with smaller market share impose the same rules, restrictions and requirements and accomplish this? Probably not.”

In order to utilize Secure Share, app providers and data recipients were originally required to register with CCC, pay a one-time developer fee of $2,500 and pay a $0.50 fee for each transaction – a cost that some reasonably speculated could equate to tens of millions of dollars in revenue, and would likely be passed on to shops downstream in the process. Vendors have had access to Secure Share without this imposed fee since last spring, but that was originally slated to change this April.

While CCC has always stood behind the value and effectiveness of its new system, a growing list of industry vendors independently expressed reluctance to share this level of optimism. John Eck, wholesale dealer channel manager at General Motors, shared his perspectives from the floor of the November CIC in Las Vegas.

“We are concerned about Secure Share and the impact on the procurement process for our dealer network, as well as the overall impact to our dealers relative to subscription and/or potential transaction fees…It is not in General Motors’ best interest to be beholden to a third party – or their system – relative to the exchange of that data information that needs to happen to repair that vehicle safely.”

Way back in January 2017, Enterprise Rent-A-Car issued a public statement in support of “an open, no-cost data platform for collision repair.”

“We firmly believe models that create barriers to vehicle and repair data could be detrimental to the industry,” stated

Mike Hawkins, vice president of business development for Enterprise Holdings Inc., owners of Enterprise Rent-ACar. “That’s because everyone benefits from an open and level playing field when industry service providers and product suppliers are able to innovate by using industrygenerated data.”

Enterprise Rent-A-Car Assistant Vice President Dan Friedman reiterated this position at November’s CIC. “That was last January, and it still holds true today,” he said, adding that his company has no current plans to embrace Secure Share.

In a recent conference call between New Jersey Automotive and CCC representatives, it was clear that the company strongly believed that it had taken a leadership role on data security with the introduction of Secure Share.

This mindset is based on three key pillars: Security, repairer control and innovation. Most significantly, CCC insisted that Secure Share gives shops the ability to truly filter the data they generate.

“If a shop is working with a specific OEM certification program, they don’t need to send every estimate to that provider,” Fincher explained. “They just need to send the estimates for that specific vehicle make for the OEM certification program they’re on. They can filter that connection down to send just the specific make for that program. That gives the control that they don’t have today.”

Fincher also argued that CCC had made “a significant investment in the infrastructure” of the platform – and such an endeavor came with expenses that deserve to be recouped.

“When we looked at that, it became obvious to us that the app providers by far receive the most benefit from this.

We eliminate their cost in developing and supporting these data pumps – [which] may run on hundreds of thousands of computers – and we give them a platform to actually market their solution to 20,000-plus repair facilities…We believe the value’s there, and we believe we have the right to charge for that and extract value from that.”

While he is encouraged by CCC’s December announcement, AASP/NJ President Jerry McNee is quick to mention that the concepts and concerns surrounding the exchange of data are still paramount.

“I see CCC’s decision as a positive step. Still, data ownership is a critical topic that everyone in our industry should be watching very closely. Cost is only one factor in this discussion; this is ultimately a matter of shops maintaining control of their data and not giving away their information to an outside party that could have more power over it than many might realize.”

NJA

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NATIONAL NEWS by Joel Gausten

NY Suits Against Progressive and Nationwide Move Forward As discussed in last month’s New Jersey Automotive, the Second Circuit Court of Appeals deemed that a lawsuit against Progressive by Nick’s Garage in Syracuse, NY was suitable to move forward. This reversed a District Court decision to grant summary judgment in favor of the insurer. News of this critical development was promptly followed by the Second Circuit Court’s similar decision in the shop’s additional lawsuit against Nationwide.

In the case against Progressive, Nick’s Garage is suing the insurer on behalf of nearly 40 first-party and thirdparty customers who elected to assign the shop the benefits of their insurance policies. According to the suit, Progressive refused to pay the shop for some of its charges for repairs conducted from 2007 to 2011, namely using OEM parts instead of alternative ones during the repair process.

Despite the District Court’s initial summary judgment in favor of Progressive, court documents available at repairerdrivennews.com demonstrate that the insurer had already faced opposition to its argument regarding “pre-loss condition” at this stage of the proceedings: Insurer argues that the First‐Party Assignors (whose claims are asserted

by Garage as their assignee) suffered no damages because their vehicles were repaired by Garage to their pre‐loss condition. Insurer misunderstands the theory of this category of claim. Insurer was obligated to pay its insureds the “loss” on a covered vehicle, i.e., the amount of money sufficient to return the vehicles to their pre‐loss condition.

Thus, the difference between what Insurer paid to Garage and the amount necessary to return the vehicles to their pre‐loss condition constitutes damages suffered by the insureds on which Garage, as assignee, can bring suit…

In any event, the First‐Party Assignors remained financially responsible to pay

36 | New Jersey Automotive | January 2018

Garage for the difference between Insurer’s payment and the full cost of repairs under the terms of the Authorization and Guidelines for Repairs… There is no merit to Insurer’s contention that the First‐Party Assignors suffered no damages regardless of whether Insurer paid less than the cost of returning the vehicles to pre‐accident condition. The District Court properly rejected Insurer’s contention on this issue.

In its decision in the Nationwide case, the Second Circuit Court of Appeals concluded (among other things) that the insurer was not entitled to summary judgment on Nick’s Garage’s claim that the carrier “engaged in materially deceptive practices” by purporting to offer “reasonably expected market Labor Rates in accordance with its policy obligations, while systematically offering lower‐than‐market rates.”

According to court documents (available at repairerdrivennews.com), Nick’s Garage presented evidence that Nationwide and other insurers “had a practice of masking the true effective Labor Rate paid to repair shops by offering repair shops ‘Labor Rate concessions’ when it had difficulty reaching agreed prices” with facilities.

The Court added that these concessions, identified as “lump sum payments or “allotting additional labor hours for repair,” promoted a “disguised effect” of compensating repair facilities more money for labor while maintaining the appearance of paying the lower Labor Rate in estimate summaries and subrogation data. The Court reasoned that Nick’s Garage succeeded in raising “a genuine issue of material fact as to whether [Nationwide’s] offers to [the facility] were based on a Labor Rate at which the claimant could reasonably expect to have a damaged vehicle repaired.”

Look for continued coverage from New Jersey Automotive on these cases as they develop.

NJA

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One-Day Course - Maximum Class Size - 8

One-Day Course - Maximum Class Size - 8

• Outer Panel Repair Philosophy

• Introduction to Small Damage Repair

• Introduction to Aluminum

• Recognizing Dents

• Damage Analysis

• Lighting

• Alu T-Hotbox Dent Repair

• Hotbox Dent Repair Aluminum & Steel

• Techniques including Knocking Down, Hammer & Dolly, Glue and Lever Systems

• Knock Down Techniques Glue Systems • Dent Repair Time Calculations

• Aluminum Repair Process Using Stud Welding

• Effects & Advantages of Correctly Prepairing Outer Panels • Repair Plan & Processing • Medium Damage Repair • Tool Dynamics • Bridge Application • Bit Application & Pulling Methods • Welding modes

Contact your Colours Sales Associate for more details.

For more information or to register, contact Keith Egan at k.egan@collisionequipmentcompany.com

267.483.5150

BOOTH #611

WWW.COLLISIONEQUIPMENTCOMPANY.COM

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Š 2018 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.

Diagnostically speaking, there is no substitute.

Porsche technology.

Porsche Genuine Service & Parts.

Contact one of these authorized dealers.

Town Porsche 105 Grand Avenue Englewood, NJ 201-227-6505 Fax 201-227-6553 www.townporsche.com

Paul Miller Porsche 3419 Route 46 East Parsippany, NJ 973-227-3000 Fax 973-575-8396 www.paulmiller.com

Flemington Porsche 213 Route 202/31 Flemington, NJ 800-216-5124 Fax 908-782-9397 www.flemington.porschedealer.com

Porsche Monmouth 280 Route 36 East West Long Branch, NJ 732-935-7600 Fax 732-935-7602 www.porschemonmouth.com

Princeton Porsche 3333 Route 1 Lawrenceville, NJ 609-945-1500 Fax 609-945-1501 www.princetonporsche.com

Manhattan Motorcars 711 11th Avenue New York, NY 877-661-1586 Fax 646-473-0798 www.manhattanmotorcars.com

New Jersey Automotive | January 2018 | 43

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COVER STORY by Kristen Dalli

A Snapshot of

Every March, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) packs the Meadowlands Exposition Center in Secaucus, NJ with thousands of automotive repair industry professionals from around the world at the annual NORTHEAST Automotive Services Show. With each passing year, the show continues to grow in scope and size, as the association works tirelessly to bring the most relevant segments of the automotive repair field to one convenient location. In recent months, AASP/NJ has released several new features for 2018, and as it gets closer and closer to the weekend of the show (March 16-18), you won’t want to miss what else is in store.

WMABA Presents New Educational Series While NORTHEAST attendees know that training and education are a staple at each show, the 2018 installment will feature a brand new educational series presented by the Washington Metropolitan Auto Body Association (WMABA): “Collision P.R.E.P. (Professional Repairer Education Program”).

In building on the success of NORTHEAST’s seminars in recent years, WMABA’s new program will further elevate the level of education attendees can find at the show.

“As the industry continues to change, education is the best way to stay ahead of the curve,” said AASP/NJ President Jerry McNee. “It’s crucial for everyone in this industry to be as informed as possible, and leave the show with real, hands-on information that they can bring back to their businesses.”

WMABA Executive Director Jordan Hendler echoed these sentiments, saying, “By working together with AASP/NJ, we’re able to educate a wider audience of collision repair professionals, and develop a relevant curriculum of industry training on the east coast.

“Our goal is to have all seminar attendees leave NORTHEAST with practical information that will last far beyond just one weekend.”

“WMABA’s high standard of industry training has been well documented over the years, and that can only help draw more attention to the show,” McNee added. “We’re hoping this new addition will bring something new to NORTHEAST that we’ve never had before.”

44 | New Jersey Automotive | January 2018

NORTHEAST 2018 Gets Bigger and Better As NORTHEAST grows larger and faster than any other regional automotive trade show, expanding to the second level for 2018 seemed all but inevitable. This year’s installment of the show will feature the NORTHEAST Pavilion—a second level set to provide attendees with an even more comprehensive experience at NORTHEAST. “Expanding NORTHEAST to another level opens so many doors for the future of the show,” said McNee. “The Pavilion gives us more room for exhibitors, it gives us more room for seminars and it allows us the opportunity to provide the most quality show for our attendees.”

“This is all about taking NORTHEAST to the next level,” offered AASP/NJ Past President Jeff McDowell. “Our goal for quite a while has been to make the show bigger, and it’s really great that we’re finally able to do that.

“We want to make it the biggest and the best show in the northeast, and expanding to the Pavilion gets us closer to that goal. There’s no other show to compete with us in the northeast anymore.”

The NORTHEAST Pavilion will host the inaugural Collision P.R.E.P. seminars, feature over 100 additional exhibitor booths, have special events and training, handson demos, a gourmet food court and much, much more.

Quality Vendors Continue to Support NORTHEAST With NORTHEAST’s expansion, there is even more room than ever before for vendors to show off their latest products and interact with customers from seemingly every corner of the map. Vendors travel from far and wide to the Meadowlands Exposition Center each year, and booth sales continue to surpass expectations as the show dates get closer and closer.

For returning exhibitor Equalizer, coming back to NORTHEAST for the first time since 2013 was all about getting exposure and increasing brand awareness.

“We’re based in Round Rock, Texas, and a lot of industry magazines come through our door,” shared Marketing Specialist Monique Stearns. “We see New Jersey Automotive quite a bit, and so we’ve seen the advertisements about NORTHEAST. “We wanted to try it out and see what it’s all about.

We’ll be able to see what people are like and what they’re

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using in the north versus here in the south. It’ll also allow us to get a better understanding of our customer base— what products are working, what they’re using to do their jobs in a different area than what we’re used to.”

On the other hand, Metropolitan Car-o-Liner is no stranger to NORTHEAST, and has become a show mainstay over their years of participation.

“For us at Metropolitan Car-o-Liner, we actually joined up with the show when they first started,” shared President Dave Demarest, Jr. “It was over 40 years ago in a very small, tabletop environment. Over the years, it’s just continued to grow—year after year it just keeps getting bigger, and now it’s the biggest and best regional show for the collision repair industry.

“We’re always happy to come back to NORTHEAST and see so many of our local customers. It’s a great place to talk with our customers face-to-face, and be able to show off our latest products to help our customers increase productivity, profitability and stay competitive.

Where else can we enjoy this in one weekend?”

“NORTHEAST is our big chance at marketing to all of our customers,” noted Nick Mattera of Pro Spot International/ Innovative Solutions, longtime NORTHEAST exhibitor and lanyard sponsor. “It’s the perfect show. There’s a great crowd — a lot of people are interested in buying things, a lot of people are interested in seeing physical equipment, and it just keeps growing. It’s been great for us to come back every year.”

Pro Spot will also be unveiling some new equipment at their booth in 2018.

“We have a big reveal this year. We’ll be showing some new equipment that’s game changing to the spot welding world.”

Though just a small sampling, attendees can expect to see many familiar faces through the aisles of NORTHEAST, as AASP/NJ has already secured a number of the industry’s most sought-after exhibitors.

Hotels & Registration: Secure Your Spot NOW! Registration for the 2018 NORTHEAST Automotive Services Show opened on December 1, and attendance is already on pace to be ahead of last year. As AASP/NJ looks to continue this remarkable attendance trend, there’s no better time than NOW to make sure you have your badge for March 16! To register for NORTHEAST, visit aaspnjnortheast.com.

In addition, AASP/NJ has agreements with a number of area hotels: Hyatt Place Secaucus, Embassy Suites, Courtyard by Marriott and Meadowlands River Inn. Staying at one of these hotels puts in you walking distance of the Meadowlands Exposition Center, and right in the heart of all the NORTHEAST action—you’re guaranteed not to miss anything. With just over 700 guest rooms across these four hotels available at the discounted show rate, you don’t want to delay in reserving your room. If NORTHEAST 2018 is anything like the show’s most recent iterations, these rooms won’t be available for long.

“Between the new Collision P.R.E.P. series and the expansion to the Pavilion, we’re taking major steps with NORTHEAST 2018,” said McNee. “It’s a very exciting time for the association. We’re looking forward to doing something we haven’t seen in an over 40-year history of NORTHEAST.” NJA

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NEW FOR 2018 Now Expanded to

TWO LEVELS!

AASP/NJ’s

2018 Automotive Services Show Meadowlands Exposition Center 355 Plaza Drive, Secaucus, NJ

The industry’s best Automotive Repair, Education, Technology, Equipment & Innovation now on TWO LEVELS! AASP/NJ's NORTHEAST Automotive Services Show at the Meadowlands is your one-stop event for education, information and the industry’s greatest exhibitors,

in the country’s most densely populated region!

MARCH 16 - 18 Visit AASPNJNORTHEAST.COM for more details.

Online FREE pre-registration for NORTHEAST is now open!

Scan this QR code for easy access.

46 | New Jersey Automotive | January 2018

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New Jersey Automotive | January 2018 | 47

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48 | New Jersey Automotive | January 2018

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WHY

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Over $1 million of inventory located in a dedicated 8,000 sq. ft. wholesale warehouse Large multi-vehicle delivery fleet Multiple daily deliveries available Long-term dedicated wholesale staff with over 100 years combined parts experience Deep discounts Quality service Industry-leading order fill rate All major parts procurement platforms including PartsTrader, OE Connection, OPSTrax PARTS HOURS: MON-SAT 8am - 5pm

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908-851-5631 EMAIL: maxonwholesaleparts@gmail.com ON-LINE PARTS ORDERING AVAILABLE! Wholesale Body & Mechanical Parts Experts Serving The Automobile Repair Industry of New Jersey

DON’T CALL OUT OF STATE! We deliver complete Hyundai parts orders the NEXT BUSINESS DAY! www.MAXONHYUNDAI.com

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MEMBER New Jersey Automotive | January 2018 | 49

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EASY WRITER by Larry Montanez III, CDA

What You Must Require from Your Estimators

A lot is wrong in the collision repair industry, but much of it you cannot control or change unless you alter the way you think. You need to focus on what you actually have control over, which is your business and how it operates. The biggest issues facing a repair facility are investment capital; credit issues; marketing capital; technician procurement and retention; Repair Order (R.O.) severity; quality and efficiency; and claim negotiation misunderstandings. These all take time to achieve, implement or perfect, but some can be easier to accomplish than others.

RO severity, quality and claims negotiations can be corrected in a more reasonable amount of time than some of the other issues facility owners face. The most common cause for most of the issues in a repair facility stem from those who write estimates. Some the estimators (including some who are also owners) in the US lack the training, education and general knowledge necessary to do the job correctly. Some of them also lack motivation and enthusiasm.

In this article, I will break down the possible issues and inadequacies of the estimators in your facility and help you evaluate your own estimators.

Identity Crisis Estimate: Verb: Roughly calculate or judge the value, number, quantity or extent of.

Noun: An approximate calculation or

50 | New Jersey Automotive | January 2018

judgment of the value, number, quantity or extent of something.

“Estimator” is a poor term or title for the person who controls or has such great influence over your profits.

It’s like calling Gordon Ramsey, Emeril Lagasse and Bobby Flay short-order cooks. Does the person you have in the office determining the cost you are charging “roughly calculate” or “make an approximate calculation” of that

amount? How long would you stay in business if they did?

Rather than “estimator,” a better term would be “damage assessor:” A person who is knowledgeable in a particular field and is called upon to evaluate and calculate the price, cost or value of something and offer advice on options. However, a damage assessor must be knowledgeable, and that requires training, education

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EASY WRITER and research. This means reading and studying – not assuming.

Training Requirements Where, how and from whom do you get this training? This is a difficult answer, as there are not many options, and many are either not comprehensive, too basic or too advanced. I-CAR is one place to start for the basics, but it also depends on who is teaching the courses.

However, some of the online courses are beneficial and consistent.

Another option is to go to one of the three or four schools that teach estimating, but those are usually too general and geared towards the make-believe “insurance compliance” or insurer-friendly ways. Mike Anderson (Collision Advice) and I have classes and workshops, but those might be too far advanced for beginners – and even some intermediate students – due to a fundamental lack of foundation training.

Currently, you can use a combination of the above and some on-the-job training. The major issue with on-the-job training is the person performing the training as well as the mindset in the shop. Many shops are misled with incorrect information about how much power insurers have over repairs, or they are misguided based on numbers and money.

Collision Hub might have the answer, and they will be launching a series of online training videos. These will be self-paced learning videos that allow users to pay per view, and they cover a wide range of topics (including a damage analysis and report writing [estimating] series). This online series should assist in speeding up the learning process and can be accessed as a reference in the future. The launch should be in the first quarter of 2018.

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Knowledge of Rules and Regulations A large percentage of facility owners and shop estimators have no knowledge of their state laws, rules and regulations – even those for their own protection. Every damage assessor must look up and read the laws in their state – not only the insurance laws, but also the consumer protection and unfair claims settlement practice acts. Each repair facility should have a copy of each insurance company policy for their state, as it would be extremely helpful to solve issues with insurance

A large percentage of facility owners and shop estimators have no knowledge of their state laws, rules and regulations – even those for their own protection. adjusters on the spot. How many times are you told their position is in the policy? How many times have you challenged that idiotic and false statement?

Another thing to consider is that you only need to use your estimating database system when you invoice for the total costs. There is no law or regulation that requires you to explain your cost of repairs to anyone but the vehicle owner. There is no law, rule or regulation that requires you to copy the insurer’s estimate (re-key) and then lock the estimate and create a supplement. Just use your damage report and anything the insurer did not

allocate for, then call them back and hand them the same damage report you handed them the first time. What they they left off their estimate is not your problem.

How to Handle Insurance Companies and Adjusters Contrary to commonly accepted mistruths, the insurance company and adjuster/appraiser have no say on the repair process, procedures, parts, repair vs. replace or even Labor Rates. Only the vehicle owner has that ability, and that person is the only one who can authorize you to perform repairs. This is true for first- and thirdparty claims.

Additionally, the insurance company doesn’t owe you anything; as such, they never paid you anything. The insurance company owes the insured or claimant – not you. The vehicle owner owes you, and they are the ones who must pay you.

New OEM vs. junkyard parts vs. knockoff imitation parts are not your issues – they are the vehicle owner’s.

On third-party claims, the insurer has no contractual agreement with the claimant, and therefore has no say on anything concerning the repairs the insurer accepted liability for. You, as the shop, can assist the insured with invoking their Right to Appraisal (AOP) or assisting in getting the paperwork together for the insured to sue their company. On third-party claims, the claimant (your customer) just needs to sue the at-fault insurer.

How to Obtain Repair Information The only correct and accurate place to obtain the OEM repair procedures and protocols is at the OEM’s technical website. Third-party systems and even integrated estimating database programs are not as up to date as the OEM sites and, in many cases, may be lacking information. A damage assessor should first try the I-CAR RTS website (rts.i-car.com) and read the updates

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WHY

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Over $1 million of inventory located in a dedicated 8,000 sq. ft. wholesale warehouse Large multi-vehicle delivery fleet Multiple daily deliveries available Long-term dedicated wholesale staff with over 100 years combined parts experience Deep discounts Quality service Industry-leading order fill rate All major parts procurement platforms including PartsTrader, OE Connection, OPSTrax

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EASY WRITER for that OEM. From there, you can click the link to the OEM technical repair information. Once you make a username and password and pay for access, you can download or save the repair information.

Additionally, you will need to add the cost of the OEM site and labor time to the damage report (estimate).

This must be performed on each and every repair. The damage assessor must also read through the information and determine the additional operations that are required that must be added to the estimate. The damage assessor must also review the mechanical and electrical manuals for the required relearns for the Advanced Driver Assistance System (ADAS), if the vehicle is so equipped.

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How to Explain the Repair Process and Payment to Consumers This is the easy part, but it does take practice to perfect it. You should give the customer an explanation they can understand.

For example, use something they are familiar with, such as a hospital insurance claim. Ask them: “Have you ever been to the hospital for a procedure and your medical insurance covered it? Did you ever get a letter a few weeks later from the doctor or hospital claiming your insurance company did not pay for a third MRI or fourth X-Ray, but they are only charging you what they were charging the insurance company? Who are you angry with? I am sure we can all agree it would be the insurance company—not the doctor or hospital.”

Common sense tells you that the doctor cured you, made you feel better and/or saved your life, and that the doctor has years of schooling and training on medical procedures. The insurer and claim representative have ZERO training on medical procedures – only some convoluted idea what costs should be. The doctor is the good guy and

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the insurance company is being unreasonable. You did pay your premiums for coverage, right?

Now let’s switch the scenario to the collision repair business. A customer’s vehicle is involved in a collision and the insurer refuses to pay them for what the shop is charging. Now who is the bad guy in the customer’s eyes? The shop, right? They are ripping off the insurer and the customer. Perception is everything until someone explains the truth. Damage assessors must explain this to customers, but they should add that they are there to help. Unlike the doctor or hospital, you – the damage assessor – can assist the vehicle owner in fighting the insurer.

I hope this article has opened your eyes to the issues not only within our industry, but maybe within your own facility, too. Look for more in-depth articles on these topics in the future.

NJA

LET US TURN THEM AROUND! Contact New Jersey Automoive Sales Director Alicia Figurelli (973) 667-6922 alicia@grecopublishing.com

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LEGAL PERSPECTIVE

by Mitchell Portnoi

Sexual Harassment: A Primer Certified by the Supreme Court of New Jersey as a Civil Trial Attorney

Most members of the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) work in male-dominated environments, dealing with cars, repairs, parts and other aspects of the automotive industry. What are the new ground rules for sexual harassment in light of the ongoing and explosive developments in politics, media and show business? The short answer: The same as the old rules for sexual harassment. The only difference is the safety that women feel in coming forward, and the security they have in numbers. Sexual predators have, in all likelihood, harassed others before, and that knowledge is being felt across the aforementioned industries.

CALENDAR

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58 | New Jersey Automotive | January 2018

As a business owner or as a leader within the business world, what can you do to protect yourself and your company from a lawsuit involving a sexual harassment claim? The simple answer is education. Speak to your employees regarding what sexual harassment is, and make sure they understand the subtle nuances that sexual harassment can take. Have them understand that words need not be used to constitute harassment, and that an unnecessary look or under the breath comment can put them and the company in a serious bind. Even if they are off the clock, texts, emails or comments can be offensive, and can lead to harassment claims

against the company.

My firm is available for seminars regarding sexual harassment, as well as educational seminars involving all types of workplace discrimination. Don’t get caught with your pants down: Literally and figuratively! Education, education, education! Make sure your employees know what they can and cannot do. If one of your employees is uncomfortable in a setting that is sexually charged, it is going to end up being the employer’s responsibility. Don’t allow yourself or your company to be victimized by not knowing the rules.

NJA

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ARANJ 2017 Officers

President Bob Dirkes - Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com 1st Vice President Ian Szoboszlay - Ocean County Auto (732) 349-0332 ian@cosmosautoparts.com 2nd Vice President Darryl Carmen - Lentini Auto Salvage (908) 782-6838 darryl@las-parts.com 3rd Vice President Rodney Krawczyk - Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net Executive Director Brian Snyder - Auto Recyclers of NJ (609) 714-2339 brian@aranj.org

ARANJ 2017 Board of Directors Mike Ronayne - Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net

Mike Yeager - EL & M Auto (609) 561-2266 elandmauto@aol.com Ed Silipena - American II Autos (609) 965-6700 esilipena@yahoo.com Harry Shover - Porchtown Auto (856) 694-1555

ARANJ

The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs

It is that time of year again where we brace ourselves for the “new” New Jersey Workers’ Compensation rates. I am happy to say that the rates for the Classifications below have decreased, while the Scrap Dealer rate has increased again.

The New Jersey Workers’ Compensation Bureau has promulgated the following rates effective for January 1, 2018: Code 3821 8265 8397 8046 8742 8810

Classification Auto Dismantler Iron or Steal Scrap Dealer Auto Garage or Repair Store: Retail Part Sales Outside Sales Person Clerical

2018 Rate $18.99 $17.03 $7.11 $5.45 $0.44 $0.22

2017 Rate $20.38 $16.09 $7.65 $5.70 $0.47 $0.27

On another note, Guarantee Insurance Company (GIC) is in LIQUIDATION, and all policies will be terminated on December 27, 2017. If you are currently with GIC, you should contact your agent — or you can call me — to find another company.

If there is a classification that I haven’t listed above that you would like to know, or if you have any questions regarding GIC Liquidation, please contact me.

Norm Vachon - Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com Dylan Rinkens - East Brunswick Auto (732) 254-6501 ebautonj@comcast.net

Mario DeFilippis, AAI Vice President 800-221-0003 (ext. 1320) mdefilippis@whartoninsurance.com

ADVERTISERS’ INDEX 1-800-NEW-PARTS ..............................................................................12-13 Accudraft ..............................................................................................30 Acme Nissan ........................................................................................4 Amato Agency ......................................................................................23 Audi Group ............................................................................................34-35 Axalta Coating Systems..........................................................................6 BMW Group ..........................................................................................16-17 BMW of Springfield................................................................................41 Bridgewater Acura ................................................................................37 Cadillac of Mahwah ..............................................................................25 Carworx ................................................................................................11 Classic Audi ..........................................................................................59 Collision Equipment Company ................................................................42 Collision Equipment Consulting ..............................................................24 Clinton Acura ........................................................................................IBC Dover Dodge Chrysler Jeep....................................................................21 Empire Auto Parts..................................................................................55 Fenix Parts ............................................................................................50 Flemington Audi ....................................................................................5 Flemington Group ..................................................................................38 Ford Group ............................................................................................22 Fred Beans............................................................................................29 Future Cure ..........................................................................................20 Glen Toyota............................................................................................OBC GM Group..............................................................................................47 Hyundai Group ......................................................................................60 Innovative Solutions & Technology / Pro Spot ..........................................IFC Klean Frame..........................................................................................55

62 | New Jersey Automotive | January 2018

Lynnes Nissan East................................................................................22 Maxon Buick-GMC ................................................................................51 Maxon Hyundai......................................................................................49 Maxon Mazda........................................................................................53 Mazda Group ........................................................................................66 Mike Kaufmann Dealer Group ................................................................65 MINI Group ............................................................................................32 Mopar Group ........................................................................................15 NORTHEAST 2018 ................................................................................46 NUCAR..................................................................................................56-57 Phillipsburg-Easton Honda ....................................................................IBC Porsche Group ......................................................................................43 PPG ......................................................................................................3 PPGMS ................................................................................................58 Princeton BMW ....................................................................................61 Safety Regulations ................................................................................58 Sherwin-Williams ..................................................................................19 Spanesi ................................................................................................65 Subaru Group ........................................................................................63 Town Motors..........................................................................................48 Toyota Group ........................................................................................22 Tri-State Luxury Collection......................................................................8-9 Valtek....................................................................................................54 VIP Honda ............................................................................................37 VW Group..............................................................................................39 Westbury Jeep Chrysler Dodge Ram SRT ..............................................64 Wheel Collision Center ..........................................................................54

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For Genuine Subaru Body Parts, contact these Authorized Subaru Dealers.

Flemington Subaru 167 Route 31 Flemington, NJ 08822 Toll Free: 877-657-2787 Fax: 908-782-1795 bseymour@flemington.com www.njparts.com

Liberty Subaru 55 Kinderkamack Road Emerson, NJ 07630 Phone: 201-261-7495 Fax: 201-261-3261 Toll Free: 888-782-9493 parts@libertysubaru.com

New Jersey Automotive | January 2018 | 63

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THE RIGHT FIT FOR THE PERFECT FINISH.

Westbury Jeep Chrysler Dodge Ram SRT 111 Bond Street Westbury, NY 11590

PROTECT YOUR CUSTOMER’S INVESTMENT WITH ORIGINAL MOPAR PARTS ®

Order Hot Line: (516) 333-2669 Fax: (516) 334-8951 www.westburyjeep.com

• Experience service that’s second to none!

• Committed to excellence — committed to our customers! Open until midnight Mon.-Fri. and Sat. 8:00 a.m.–6:00 p.m.

• First-class Jeep dealer!

Authentic Mopar Parts are built to fit perfectly and function properly every time. This ensures your customers are getting the highest quality parts manufactured to meet the original specifications and safety standards of their vehicle. Providing more peace of mind for each customer you serve. ®

®

©2018 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.

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Superior service starts with superior parts.

Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life.

Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you Contact these Mazda dealers for all your parts needs: Maxon Mazda 2329 Route 22 West Union, NJ 07083 Phone: 800-964-7281 Fax: 908-851-5631

Nu Car Mazda 172 North Dupont Highway New Castle, DE 19720 Phone: 800-346-5283 Fax: 302-322-7135

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Mazda of Lodi 130 Route 46 East Lodi, NJ 07644 Phone: 866-716-0511 Fax: 973-594-4933 www.mazdaoflodi.com

Wayne Mazda 1244 Route 23 North Wayne, NJ 07470 Phone: 973-646-0333 Fax: 973-694-1700 www.waynemazdafactoryparts.com

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